Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
Dropdown 1: Company C
Dropdown 2: +$10
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
73% (02:07) correct
27%
(02:23)
wrong
based on 725
sessions
History
Date
Time
Result
Not Attempted Yet
A day trader bought 50 shares of one of the companies shown in the graph, at the stock prices (in dollars) indicated in the graph above. He purchased the shares at 9:00, when the market opened, and sold all 50 shares at 13:00.
Select from each drop-down menu the option that creates the most accurate statement, given the information provided.
If the trader made a total profit of $250 on that day, he bought shares of , which at the market close at 16:00 had an overall price change of approximately .
Attachment:
GMAT-Club-Forum-p0uhpuoq.png [ 103.75 KiB | Viewed 2262 times ]
ShowHide Answer
Official Answer
Dropdown 1: Company C
Dropdown 2: +$10
10 Apr 2025, 04:41
Kudos
Bookmarks
Official Solution:
Drop-down 1:
We are told that the day trader made a total profit of $250 from trading 50 shares of a particular company.
Since profit = (selling price – buying price) × number of shares, the stock price must have increased by $250 ÷ 50 = $5 between 9:00 and 13:00.
We need to identify the company whose stock price increased by $5 during that time period. Note that the graph shows stock prices beyond 13:00, but only the price change from 9:00 to 13:00 is relevant to the trader’s profit.
From 9:00 to 13:00, the following price changes occurred. We should check all companies to be certain. No calculator is needed — we can quickly note the differences and identify which company had a price increase of $5.
Company A: 55 → 65, a change of +10
Company B: 20 → 30, a change of +10
Company C: 105 → 110, a change of +5 — Correct
Company D: 65 → 50, a change of –15
Drop-down 2:
At the market close at 16:00, Company C had an overall price change of +$10, from $105 to $115.
Correct answer:
Dropdown 1: "Company C"
Dropdown 2: "+$10"
Bunuel
Drop-down 1:
We are told that the day trader made a total profit of $250 from trading 50 shares of a particular company.
Since profit = (selling price – buying price) × number of shares, the stock price must have increased by $250 ÷ 50 = $5 between 9:00 and 13:00.
We need to identify the company whose stock price increased by $5 during that time period. Note that the graph shows stock prices beyond 13:00, but only the price change from 9:00 to 13:00 is relevant to the trader’s profit.
From 9:00 to 13:00, the following price changes occurred. We should check all companies to be certain. No calculator is needed — we can quickly note the differences and identify which company had a price increase of $5.
Company A: 55 → 65, a change of +10
Company B: 20 → 30, a change of +10
Company C: 105 → 110, a change of +5 — Correct
Company D: 65 → 50, a change of –15
Drop-down 2:
At the market close at 16:00, Company C had an overall price change of +$10, from $105 to $115.
Correct answer:
Dropdown 1: "Company C"
Dropdown 2: "+$10"
General Discussion
24 Aug 2024, 17:16
Kudos
Bookmarks
Great question! Different!
I see the 13:00 and 16:00 - is that on purpose to make it trickier? I assume so.
Should it say "must have purchased" instead of "most likely"?
I see the 13:00 and 16:00 - is that on purpose to make it trickier? I assume so.
Should it say "must have purchased" instead of "most likely"?
